Centuries, precious metals like gold and silver have become a symbol of wealth. To this day, however, the special position of precious metals portfolio investors in the world. However, did you know that the price of the precious metal in the market can go up and down with sharp? Also that the precious metals not only in the form of gold or silver? Learn about the variety of precious metals to find out which one is best suited to Your investment portfolio in the country gentlemen.
Precious metals are metallic chemical element which occurs naturally and is rare, and have high economic value. The price of the precious metal is usually determined by a high demand or its market value. When discovered the location of a new mine or a more efficient processing technology, then the price could change significantly.
Precious metals are also usually sparkles, and often used as currency in the past. This time, the noble metals that often not only used as a raw material for jewelry, but also as an industrial raw material and medical equipment. Among precious metals, the most numerous being the target investpor is gold, silver, Platinum, and Palladium. Precious metals are usually sold in the form of bullion and traded in commodities markets. In addition to the four kinds of metal, there are also other precious metals like rhodium, osmium, rhenium, ruthenium, and others that are less popular as investment assets.
Gold is the "King" of precious metals and is known as a safe haven in times of economic and political turmoil. Gold also lies in the uniqueness of her character are durable (not rusty), easily forged, and is the conductor of heat and electricity. Therefore, it becomes a commodity multifunctional, used both in medical instruments, electronics, jewelry, or even a base currency.
The price of gold fluctuated almost 24 hours a day seven days a week, in line with market movements. Gold trading is currently leaning more on market sentiment than the law of supply and demand. According to Investopedia, this is because the new supply from mines is much lower than of gold hoarded by the public. Simply, when a society that wished to sell the gold, then the gold price will fall. When they want to buy, then a new supply from mines will soon be bought and the price of gold increased.
A number of factors to be part of the consideration of fundamental trading Gold:
- Currentfinancialcondition
When financial conditions judged less stable political conditions, or questionable, gold will be identified by many as a universal repository of wealth.
- Inflation
When the yield stocks, bonds, or other assets like minimal or even negative votes, then the community will pursue the gold as an asset for maintaining the value of the wealth they have.
War or conflict is Geopolitics
War or conflict geopolitical frequently make people hoard gold, compared to a currency whose value could be is not clear. The entire family wealth can be redirected into gold, and that gold can be interchangeable with the necessities of life or costs to a more secure location.
Fluctuations in the price of silver is actually greater than the gold even though the value is nominally it could be lower. This is because aside from being a repository of value, silver also has a major role in the field of industry, including in the manufacture of solar cell panels, batteries, water purification, medical tools, photography, electronics, even also as a hydrocarbon catalyst in the reaction is the production of chemicals is important.
Therefore, even though the demand for silver as an investment asset is quite high, but the demand for silver as an industrial raw material also have an impact on the price. The rising middle classes in Asia to unleash demand for electronic goods, for example, encouraging demand for Silver (at one time the price) went up. A number of analysts even argued that silver investment could be more lucrative than gold because of its properties that are desperately needed by industry.
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